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Deceased estates

This EDR assessing guide is provided to assist industry professionals understand the requirements when self-assessing and processing transactions using EDR.

For a comprehensive understanding, it is recommended that this guide is read in its entirety.

Chapters

  1. Overview
  2. Supporting information
  3. Assessing transfer duty
  4. Processing and lodgement requirements
  5. Record keeping and audit

1. Overview

On this page

Under section 63 of the Duties Act 1997 concessional duty applies for certain transactions that transfer dutiable property as part of the administration of a deceased estate.

The most common instruments used for the transfer of property in a deceased estate is either by:

  • Transmission application: to an executor, administrator or trustee.
  • Transmission application: to a beneficiary or devisee.
  • Transfer: from an executor, administrator or trustee as transferor to the beneficiary or beneficiaries as transferee/s.

Concessional duty may also apply in the following circumstances:

  • If there is no valid will, and a grant of Letters of Administration has been issued by the Court, Chapter 4 of the Succession Act 2006 sets out the order in which eligible relatives will inherit the estate of a deceased person.
  • If there is an appropriation in or towards satisfaction of the beneficiary’s entitlement under and in conformity with the trusts contained in the will of the deceased person.

Concessional duty will not apply to a contract for sale of land.

Liability date

The instrument is liable to duty from the date of its first execution, as specified in section 12 and section 295 of the Duties Act 1997.

Liable party

In accordance with section 9 of the Duties Act 1997, duty is payable by the beneficiary/devisee or transferee.

When is duty payable

In accordance with section 17 of the Duties Act 1997 duty is payable within three months from the liability date.

How is interest calculated

If payment is made after the due date (i.e. 3 months after the liability date) interest will be payable. In addition, penalty tax may be payable.

Interest is calculated daily from the end of the due date until the day duty is paid.

For further information about the current interest rates refer to Interest and penalty tax.

To calculate interest, you can use our interest calculator.

For more information see part 5 of the Tax Administration Act 1996 No 97 (TAA).